Now is the right time to teach children saving

COMMENT | JULIET BAGGYA NSIYONA | One of the communities known widely for the old age tradition of saving is India. Popularly known for encouraging the saving of chunks of their income rather than consuming it, this tradition is instilled right from birth, so, ideally each Indian child is aware of the pros of delayed gratification.

In most of the African countries in the continent, some of the most successful families, are Indians. In Uganda, extravagance and showbiz has taken center stage in the lives of most of the natives. Spending to make a statement has become a norm, and a vice that unfortunately the children get to learn and in turn replicate.

The saving culture is one that we ought to pass down and inculcate in our children at a very young age. Training a child to appreciate money and sparingly or rather hold on to it as opposed spending it till its finished. The idea of piggy banking which originates over 600 years ago in the 6th Century when people would use pots to store or keep their money has since evolved to convenient ways like digital bank accounts for children.

As much as saving is very important, keeping track of your expenses is equally important. Modernized methods of banking have since equipped customers with services that if used well can for the long-haul result to proper finance management as well as growth in one’s income.

Parents, teaching a child on ways to save can be done with as low as UGX. 100 shs. It goes a long way to teach and educate a child that if overtime one puts UGX. 100 shs aside in their savings, for 10 times, they will have even more money on them, i: e: UGX. 1,000 shs. With such training from childhood, the discipline of later gratification, and living within your means are taught directly and indirectly.

As children continue to grow, the onus again is on the parents to gradually introduce their children to ways of investing the money they would have learnt to save. Methods like the 50/30/20 rule can be taught with examples closer to home. 50% of what they have for expenses (needs), 20% would be saved and 30% for their wish lists (wants).

Educating children on better ways to use money is key for their development and should be introduced in schools. Some of the easiest ways to start would be through opening accounts like the Cente Junior account for these children, where they too get to have their own banking experience.

A wise man once said money is the root of all evil. We have seen the extent to which individuals have misused money, however, we can also choose to raise our children to appreciate, value and with integrity use money to better the lives of others ad theirs.

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The writer is Juliet Baggya Nsiyona the Manager SME Banking Centenary Bank